- 5,400,000 common shares to be issued at a price of $0.93 per share
- Closing expected by June 29, 2012
MONTREAL, June 26, 2012 /CNW Telbec/ - Argex Mining Inc. (TSXV: RGX) (FSE: ASV) (OTCBB: ARGEF) is pleased to announce that it is effecting a private placement with a U.S.-based investment fund manager and a current shareholder of Argex. The private placement is for 5,400,000 common shares at a price of $0.93 per share, for gross proceeds to Argex of $5,022,000. No warrants will be issued as part of this private placement.
The private placement is expected to close on or about June 29, 2012. Argex will use the proceeds from the private placement for working capital and general corporate purposes.
Argex will not pay any commissions in connection with the private placement.
The private placement has been conditionally approved by the TSX Venture Exchange, subject to certain standard verifications by the Exchange. The securities issued in the private placement will be subject to a four-month "hold period" under applicable securities legislation and the policies of the TSX Venture Exchange.
Roy Bonnell, President and Chief Executive Officer of Argex, commented, "We are very happy that Argex is completing a private placement for more than $5 million. In this volatile market, this financing represents a vote of confidence in our company and in our business plan, which is to advance towards production of titanium dioxide. Upon closing of this private placement, Argex will have approximately $10 million in liquidity."
There are currently 109,923,496 common shares of Argex issued and outstanding.
About Argex Mining Inc.
ARGEX MINING INC. is a near-term producer of commodities that the world needs: Titanium Dioxide, Iron and Vanadium Pentoxide. With a primary goal of advancing rapidly towards production, Argex has adopted a simple and low-risk strategy for the scale-up of its proprietary process that allows it to produce high-purity TiO2 directly from run-of-mine material from its 100%-owned deposit.
The process is running continuously at the mini-plant in Mississauga, Ontario. The closed-loop process is environmentally friendly and produces minimal inert tailings.
Additionally, the Corporation owns 100% of the Mouchalagane property, which is a large Labrador trough iron ore property that represents further potential upside for the Argex shareholders.
Forward-Looking Statements and Disclaimer
This press release may contain forward-looking information within the meaning of applicable securities laws. All information and statements other than statements of historical facts contained in this press release are forward-looking information. Such statements and information may be identified by words such as "about", "approximately", "may", "believes", "expects", "will", "intends", "should", "plans", "predicts", "potential", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof or other comparable terminology. Forward-looking statements are based on the best estimates available to Argex at this time and involve known and unknown risks, uncertainties and other factors that may cause Argex's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A description of the risks affecting Argex's business and activities appears under the heading "Risk Factors" in Argex's Amended and Restated Annual Information Form dated January 14, 2011 for the fiscal year ended December 31, 2009, which is available on SEDAR at www.sedar.com. No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that Argex will derive therefrom. In particular, no assurance can be given as to the future financial performance of Argex. The forward-looking information contained in this press release is made as of the date hereof and Argex undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws. The reader is warned against placing undue reliance on these forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.